British Columbia will broaden its Provincial Sales Tax (PST) to include a range of professional services from 1 October 2026, maintaining a 7% rate that, combined with the federal 5% GST, brings the total tax on most supplies to 12%. For architectural, engineering and geoscience services, PST will apply to only 30% of the purchase price. Service providers in the new scope must register for PST and prepare to charge, collect and remit the tax, with further administrative guidance to follow.
The new PST rules for professional services take effect on 1 October 2026.
The PST rate remains 7%, so combined with the federal 5% GST the total tax on most supplies will be 12% from 1 October 2026.
PST will apply to 30% of the purchase price for these services, not the full contract value.
They must register for PST and set up processes to charge, collect, and remit the tax; further administrative guidance on invoicing and bundled supplies will be issued before the rules take effect.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
Troy Media · 2 days ago
Canada’s federal government has announced a one‑time top‑up to the GST credit, rebranded as the Canada Groceries and Essentials Benefit, which will increase payments by 25 % for five years starting in July 2026. The benefit will extend to 500,000 new families, potentially helping up to 12.6 million Canadians, but eligibility thresholds are low, excluding many low‑income households. The article argues that these tweaks are insufficient and calls for a larger increase in the basic personal amount to provide broader relief.
Meyka · 10 days ago
Canada’s federal government fast‑tracked Bill C‑19 on 14 February 2026, adding a one‑time spring top‑up equal to 50 % of the annual GST credit and raising the base credit by 25 % for five years. More than 12 million low‑income Canadians will receive the payment automatically via the CRA, with a family of four eligible for up to C$1,890 in 2026.
Globe and Mail · 14 days ago
Canada Revenue Agency has confirmed that independent financial advisors will now need to collect and remit GST/HST on trailing commissions from mutual fund dealers, effective July 1, 2026. The rule applies to advisors whose taxable revenue from trailing commissions exceeds $30,000, while dealer employees remain exempt. The CRA’s notice clarifies that trailing commissions are no longer considered financial services for GST purposes.
Canadian Affairs · 19 days ago
Canada’s Parliament fast‑tracked legislation to boost the GST credit over six years at a cost of $12.4 billion, targeting low‑ and moderate‑income households. The credit will rise 50 % in 2024 and then increase by 25 % each year from July 2025, with a family of four eligible for up to $1,890 in 2026. The editorial critiques the lack of funding plans and the long‑term impact on the deficit.
Canadian Accountant · 26 days ago
This commentary highlights five significant Canadian GST/HST court decisions from 2025, covering topics from tobacco sales to insurance, medical services, optional term extensions, and Airbnb-listed condo sales. The rulings clarify exemption status, input tax credit eligibility, and the treatment of new supplies, providing guidance for tax planning and compliance in 2026.
The Globe and Mail · 28 days ago
Canada Revenue Agency has reversed its 35‑year position, treating mutual fund trailer commissions as subject to GST/HST. The change will take effect on July 1, 2026, requiring dealers to collect and remit the tax, while managers can recover it as input tax credits. Industry groups argue the implementation deadline is unrealistic and the change adds costs without revenue benefits.
